Global Record Expansion Of Renewable Energy Continues In 2025 - Geopolitical Situation Puts Solar And Wind In Focus

Abu Dhabi (UAE) - In 2025, the global expansion of renewable energy continued at a strong pace. According to the latest figures from the International Renewable Energy Agency (IRENA), more and more countries are focusing on domestic renewable energy sources to make their energy systems more resilient and reduce geopolitical dependencies.

The market data published in IRENA’s latest report on global renewable energy development in 2025 presents a mixed picture. While Asia – driven largely by China – dominates global expansion in absolute terms, regions with previously lower installed capacity, such as Africa and the Middle East, are experiencing their highest growth rates to date. Countries that began the energy transition early are benefiting economically from more stable and resilient energy systems, IRENA emphasizes. The report also shows that 96.8% of global net capacity additions in renewable energy come from solar and wind power.

Solar and wind drive global expansion

Global renewable energy capacity increased by 692 GW in 2025 to a total of 5,149 GW, corresponding to growth of 15.5% (2024: 4,457 GW). The expansion is dominated by new solar and wind projects: photovoltaic energy contributed 510.3 GW, while wind power added 158.7 GW. Within solar energy, almost all new capacity came from photovoltaics, accounting for 510.3 GW out of 511.2 GW of newly installed solar capacity. Together, these two technologies make up around 97% of all net additions. Bioenergy increased by 3.4 GW, while geothermal energy contributed 0.3 GW and hydropower 18.4 GW. Around 96% of the hydropower expansion took place in China, underscoring the continued strong role of individual markets in global growth.

IRENA Director-General Francesco La Camera commented: “In the midst of uncertain time, renewable energy remains consistent and steadfast in its expansion. A more decentralised energy system, with a growing share of renewables and more market players, is structurally more resilient. Countries that invested in the energy transition are weathering this crisis with less economic damage, as they boost energy security, resilience and competitiveness.” The dominance of solar and wind also reflects the largest cost reductions among renewable technologies. “This not only indicates market preference but also makes a strong case for renewable energy resilience with brutal clarity”, La Camera added.

Regional differences and geopolitical significance

Asia led capacity growth with a share of 74.2% and 513.3 GW, corresponding to growth of 21.6%. Africa recorded its highest growth to date, with capacity increasing by 15.9% to 82.4 GW, driven by Ethiopia, South Africa, and Egypt. Capacity in the Middle East expanded by 28.9% to 56.4 GW, led by Saudi Arabia.

In terms of total capacity, Asia clearly leads with 2,891 GW, followed by Europe with 934 GW and North America with 614 GW. Central America and the Caribbean rank last with 21 GW. These disparities highlight the vulnerability of economies with a low share of renewable energy and the need to increase this share to strengthen energy security.

The geopolitical situation, particularly tensions in the Middle East, underscores the strategic importance of domestically produced, low-cost, and readily deployable renewable energy. Countries that already rely on solar, wind, and other renewable technologies are better able to shield their energy systems from international shocks.

Source: IWR Online, 09 Apr 2026